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Home My WebLink About2002-09-10; City Council; 16866; Report on City Investments as of July 31, 2002CITY OF CARLSBAD -AGENDA BILL AA m LEw 16.866 DEPT. ‘ m: REPORT ON CITY INVESTMENTS ATG. 9-10-02 AS OF )EPT. TRS July 31,2002 I CITY MGR: RECOMMENDED ACTION: Accept and file report ITEM EXPLANATION: The City’s Investment Policy requires the City Treasurer to report to the City Council on a monthly basis the status of the City’s pooled investment portfolio. A quarterly report is also required for the investments of bond proceeds held separately. The City’s pooled investment portfolio as of the month ended July 31,2002 is summarized below. Pooled Investment Portfolio (Cash and Securities) Current Month Prior Month Par Value 388,210,877 Amortized Cost (1) 389,451,477 388,036,005 Cost of Investments 389,033,854 387,603,424 397,926,961 397,927,932 Market Value (2) 389,632,854 (1) The cost of investments adjusted for amortized premiums and discounts. (2) The amount at which the investments could be sold. Source of market values is Union Bank of California’s custodial report as of 7/31/02. The equity portion of the various funds at the amortized value of the total portfolio is summarized below: Fund Equity in Pooled Investments Cash Balance by Fund: General 147,386,811 Capital Projects 3,514,826 Debt Service 26,170,324 Special Revenue 72,394,289 (3,061,939) Reconciling Adjustments 11,311,872 Agency Funds 13,938,002 Internal Service 116,556,691 Enterprise Total Treasurer’s Investment Portfolio at Amortized Cost 3aa,m,an Fund equity balances are restricted for various purposes as listed above. See Exhibit 7 for a more detailed breakdown. PAGE TWO OF AGENDA BILL NO. 16,866 ‘The cash income received is adjusted for any accrued interest purchased. Modified Duration June 2002 1.07 4.79% 1.17 July 2002 1.06 4.85% 1.17 1. 2. 3. 4. 5. 6. 7. 8. 9. All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised January 8, 2002. All investments were initially made in accordance with the City’s Investment Policy. Events subsequent to the purchase might have typically a change in the City’s Investment Policy, a change in the credit rating subsequent to a resulted in some investments not being in compliance with the current policy. These events are purchase, or a temporary reduction in total portfolio assets. See Exhibit 8 for details. The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. EXHIBITS FOR POOLED INVESTMENTS: Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield Investment Portfolio Breakdown Of Maturities Yield Comparison Graph Cumulative Cash Income Graph First Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 s rp 3 EXHIBIT 2 s 8 s 8 s 8 s 8 s c: P s 9 0 s 2 s 0 8 s 2 0 0 0 0 0 3 E x 2 r. m m '0 W 0 s % m W w m m P x 0 0" d a g c 0 s 2 W 0 0 0 W P 2 W 0 vi vi" - 0 0 0 m 3 - m m P w 2i s 2 m 0 0 0 0 vl m N In 0" x m m vi x 2 t- m m '0 W vi 2 P m m P x 0 0" - H c 0 u c\l 0 0 c\l * .. F -1 i EXHIBIT 4 n mo m 0% w - , . . t . . t . . I - EXHIBIT 5 NNWNWNNN 00000000 0 NNNNNNNN 00000000 2 ::aacaaa S I I, =====222 0 bbf.r-1cI.b- a 00000000 0 7 EXHIBIT 6 c a a 0 W Y) z > 7""" 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF JULY 31,2002 Cash Balance by Fund: General Special Revenue Debt Service Capital Projects: General Capital Construction Traffic Impact Fees Public Facilities Fees Park Development Transnet Taxes Drainage Fees Special Districts Infrastructure Replacement Other Capital Construction Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Golf Course Total Total Internal Service Redevelopment Funds (1) AgencyFunds Misc. Special Funds Total General Ledger Balance ** Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 72,394,289 26,170,324 3,514,826 12,578.543 6,266,885 31,909,301 8,747,693 7,767,860 7,814,425 59,398,619 11,626,565 1,276,920 147,386.81 1 51,783,559 58,203,154 4,000,359 2,569,620 116,556,691 13,938,002 0 11,311,872 0 391,272,816 (3,061,939) 388,210,877 (1) Redevelopment Fund Balances are interspersed throughout all funds (2) The Reconciling Adjustments consist of differences between the General Ledger which is prepared on an accrual basis and the Treasurer's report which is prepared on the cash basis. Accrued Interest, amortized premium or discounts and outstanding checks and deposits in transit are not included in the Treasurer's summary. Differences between the time journal entries are posted and the time this report is produced may also be a component of the adjustment. ** Figures based on best estimate at the time report run on 8/06/02 EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JULY 31,2002 CORPORATE NOTE AND COMMERCIAL PAPER RATINGS Corporate Note Investments Meeting the Current Investment Policy: (Ratings must be AA or better by both Moody's and SBP) ABN AMRO BANK ALLSTATE FINANCIAL ASSOCIATES CORP ClTlGROUP BAYER CORP COMMERCIAL CREDIT CO CREDIT SUE DEAN WllTER DISCV GENERAL ELECTRIC JERSEY CENT P&L MERRILL LYNCH MORGAN STANLEY DEAN WllTER NORTHERN ILL GAS OHIO BELL TEL SBC COMMUNICATIONS PITNEY BOWES INC SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL Moodv's AA3 AA2 AA2 AA1 A41 AA1 AA3 AA3 AM AM AA3 AA3 AA1 AA2 AA3 AA3 AA3 AA2 - SBP AA+ AA- AA- AA AA- AA- AA- AA- AAA AM AA- AA- AA AA- AA- AA AA- AA- Commercial Paper investments Meeting the Current Investment Policy: (Ratings must be AIIPI or better by both Moody's and SBP) (Ratings of other debt must be AA or better by Moody's or SBP) NONE Investments with Subsequent Changes In Credit Rating Moodv's - Carrying Market SBP MaturitvDate Purchased & & Latest BAYER CORP A2 AA- 10/01/02 AA2/AA 1,251,902 1,257,625 CAMPBELL SOUP CO AA3 A 10/01/03 AA3/AA- 1,960,005 2,055,060 HEWLETT-PACKARD A2 A- 06/15/05 AA3/AA- 7,205,705 7,436,030 WACHOVIA CORP AI A 07/15/05 AA3/AA- 4,016,076 4,320,840 * The City's IfIVeStment Policy allow the City Treasurer to determine the course of action that would correct exceptions to the Policy. All of these investments are paying interest at the required times. The principal of all investments are considered secure. It is the intent of the City Treasurer to hold these assets in the pomolio until maturity unless events indicate they should be sold. EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JULY 31,2002 PERCENTAGE WElGHTlNGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL ASSOCIATES CORP NA BAYER CAMPBELL SOUP CO ClTlGROUP COMM CREDIT CREDIT SUlS DEAN WITTER DlSCV GENERAL ELECTRIC CAP HEWLETT-PACKARD CO JERSEYCENTP&L MERRILL LYNCH MORGAN STANLEY DEAN WITTER NORTHERN ILL GAS OHIO BELL TEL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN NlEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Total Portfolio No more than 5% may be invested with a single issue Investment Cost 4,228,884.98 8,020,253.19 9,953,526.13 1,291,375.00 1,868,682.02 8,372,495.00 7,474.695.94 3,109,140.66 2,950,553.97 7,948,535.60 7,301,835.93 2,974,560.00 9,272,283.27 15,789,131.03 715.349.40 1,947.308.26 1,919,298.74 Percent of Portfolio* 1.09% 2.07% 2.57% 0.33% 0.48% 2.16% 1.93% 0.80% 0.76% 2.05% 1.88% 0.77% 2.39% 4.07% 0.18% 0.50% 0.49% 4,058,27556 1.05% 1 ,I 13.832.90 0.29% 3,151,155.18 0.81% 4,023,404.94 1.04% $388,036,004.96 /3